Literate Consumers Research Articles

The Need for Consumer Literacy Education among Children in India

Children in countries like India are experiencing obesity as a disease during their childhood, due to the intake of processed foods in a large quantity. The role of marketing plays a vital part in persuading children towards such food habits and leads to greater consequences both physical and mental wellbeing. The term consumer literacy is the needed antidote for children to cultivate within them during their childhood so that, they can safeguard themselves from the marketing tactics of businesses. This study focuses on the attributes that determine the consumer literacy knowledge of children and differentiates the attributes that need improvement among children before they get influenced by the marketing efforts targeted towards them. The results show that children were finding it difficult to critically understand advertisements and tend to believe blindly to it. And also, they were more allowed to do impulse buying during shopping. Parents, teachers and government should teach and educate children about the marketing nuances so that the forthcoming generation can develop wise consumption habit and contributes towards sustainable future. Keywords: consumer literacy, Children, wise shopping, literate consumers, advertisements.

Beyond energy efficiency: Do consumers care about life-cycle properties of household appliances?

Legislative proposals intend to require that manufacturers provide consumers with information on product life-cycle impacts. Yet, little is known about how consumers value such life-cycle information and who would be most sensitive to it. In this paper, we employ data from a demographically representative household survey among the adult population in Germany (N = 404), which elicits individuals’ preferences for energy-related attributes of refrigerators. Based on mixed logit analysis of a discrete choice experiment, we find that consumers, on average, dislike refrigerators with much higher embodied energy, value the highest energy class, and prefer refrigerators with longer warranty periods. Latent class models distinguish three consumer classes: 'price sensitives' (36%), 'quality seekers' (24%) and 'energy savers' (40%). 'Energy savers' are characterized by a higher environmental identity, energy literacy, and more patience than the other classes. Rating scales reveal that consumers consider life-cycle properties with direct, private benefits much more strongly than properties with mainly indirect, social benefits. Results from ordered logit models suggest that women with more patience and high environmental identity consider all life-cycle properties more strongly, while durability appears to also be valued more by low-income and more energy literate consumers. The results support ongoing policy initiatives that require the provision of life-cycle information and call for instruments to help consumers select appliances based on life-cycle costs.

Embracing biodegradable bags: effects of ethical self-identity on consumer buying behavior

PurposeThis study aims to predict ethical self-identity’s effect on consumer buying behavior of biodegradable bags. Moreover, a moderated mediation model is tested by analyzing the mediating role of attitude and the moderating role of religiosity to investigate buying behavior. Few studies have been conducted to explore moderated mediation to predict consumer behavior based on belief congruence and planned behavior theories, according to previous literature, indicating a literature gap in consumer behavior studies. Accordingly, the moderating role of religiosity in the relationship between ethical self-identity and purchase intention in the context of biodegradable bags was used to contribute to the consumer behavior literature.Design/methodology/approachThe population of the study included literate consumers who are aware of biodegradable bags and keen to buy them. The data were collected from consumers of twin cities (Rawalpindi/Islamabad) via purposive sampling. The data were collected from 310 consumers five-time lags.FindingsThe findings suggest that ethical self-identity influences the buying behavior of consumers toward biodegradable bags. In this study, the theory of planned behavior provides greater implications to predict consumer buying behavior because the subjective norm, perceived behavioral control and attitude were found to have a significant influence on purchase intention, which further predicts the actual consumer behavior.Research limitations/implicationsThe study’s sample was limited to one geographical area and the sample was limited to only biodegradable bags. Future studies may go for a cross-comparison of industries or multiple environment-friendly products to enhance the generalizability of the research.Practical implicationsThis study provides useful insights to the companies of consumer-based brands to use eco-friendly practices from production to packaging and consumption. Environment-friendly consumers are ready to pay a premium price for environment-friendly products, which encourages decision-makers companies to cater to this niche market. Moreover, companies can focus on factors that influence their decision-making, such as ethical and moral values of responsibility, while planning their advertising strategies. Furthermore, the positioning of the environmental or consumer personal care products should be done by considering the personal disposition factors because they reinforce the actual behavior of employees.Social implicationsFor researchers, this research opens new avenues for predicting consumers’ buying behavior by applying the theory of planned behavior in the plastic bag industry. This study provides useful insights to the companies of consumer-based brands to use eco-friendly practices from production to packaging and consumption.Originality/valueThe proclivity to buy biodegradable bags increased over time, providing opportunities to the companies to offer environmentally friendly products to an increasing number of customers. However, personal deposition factors, such as religiosity and consumer views, are less well understood in terms of predicting actual behavior. Few studies have been conducted to explore moderated mediation to predict consumer behavior based on belief congruence and planned behavior theories, according to previous literature, indicating a literature gap in consumer behavior studies.

Mortgage delinquency during COVID-19: do financial literacy and personality traits matter?

PurposeMortgage delinquency has become a major crisis following the COVID-19 pandemic. This study explored mortgage delinquency antecedents, focusing on two individual-level factors: financial literacy and personality traits.Design/methodology/approachUsing a large sample of 2,511 consumers, we examined the direct effect of financial literacy and its interaction with personality traits to predict mortgage delinquency based on logistic regression analysis. We further provide several robustness tests to validate our findings.FindingsWe find that financially literate consumers are 6% less likely to delay their mortgage repayment during the COVID-19 pandemic. Moreover, personality traits such as neuroticism and extroversion positively and conscientiousness negatively moderate the given linkage between financial literacy and mortgage delinquency.Practical implicationsBanks and financial companies may devise relevant policies to reduce mortgage repayment by knowing the interplay between financial literacy and personality traits. Personality traits can be considered one of the parameters while sanctioning mortgages to prospective customers.Originality/valueOur research examines the linkage between financial literacy, personality traits and mortgage delinquency based on a large nationally representative sample. Our findings suggest that personality traits moderate the effect of financial literacy on mortgage delinquency.

Income satisfaction among Millennials during COVID-19: the interplay among cognitive, noncognitive and financial factors

PurposeThe purpose of this study is to examine income satisfaction among Millennials during COVID-19. The authors explore the roles of cognitive factors: financial literacy and noncognitive factors: personality traits. Further, the authors also determine if financial status moderates the linkage between consumers' financial literacy and income satisfaction.Design/methodology/approachThe sample size of the study is 1754, and the data were collected from April to December 2020. The authors employ ordered logistic regression analysis in the study.FindingsThe authors find that financially literate Millennials report high-income satisfaction during the pandemic. However, the impact of the cognitive factor gets nullified after considering the role of noncognitive factors. Further, income moderates the linkage between financial literacy and income satisfaction such that financially literate consumers in the high-income category derived more income satisfaction.Practical implicationsConsumer financial education should become more pervasive, and the focus should be placed on high-income consumers as, without financial literacy, they may not report high-income satisfaction. Further, the marketers should also keep in mind that personality traits play an important role in consumers' overall satisfaction, so financial services and products should be designed considering consumer personality traits.Originality/valueThe primary contribution of the paper is to show the positive impact of cognitive and noncognitive factors on income satisfaction. Moreover, personality traits are stronger predictors of income satisfaction such that extroverted individuals have high satisfaction, whereas openness to experience and neuroticism is negatively related to income satisfaction among Millennials.

THE INFLUENCE OF ADVERTISING ON CONSUMER PREFERENCE: A STUDY OF GUINNESS FOREIGN EXTRA STOUT AND WILFORT DARK ALE

This study examines the influence of advertising on consumer preference for Guinness Stout and WIlfort Dark Ale. The survey method of research was adopted and 200 literate consumers of the brands under study who reside in Ibadan were purposively selected and sampled. Data collected were analyzed using percentage grade tabulation and correlation analysis. Results show that consumers perceive Guinness Stout adequately advertised and Wilfort Dark Ale under advertised. In terms of quality, consumers rated Guinness Stout adverts higher than that of Wilfort Dark Ale. The study also revealed that advertising influences consumer preference, however, quality (taste) and availability in that order, have greater influence on consumer preference than advertisements. The study concludes that advertisements alone cannot bring about brand preference. It is in this regard, that the following among others were recommended: That producers should ensure that their products are of very good quality and are made available to the people where and when needed. Specifically, Guinness Nigeria. Plc, producers of Guinness Stout should sustain Guinness Stout’s advertisement in terms of quality, reach and frequency, while, Sona Breweries, producers of Wilfort Dark Ale should consider it important to increase its advertisement of Wilfort and extend the advertisement to other media such as radio and television if and when they are ready to expand their market.
 
 

THE INFLUENCE OF ADVERTISING ON CONSUMER PREFERENCE: A STUDY OF GUINNESS FOREIGN EXTRA STOUT AND WILFORT DARK ALE

This study examines the influence of advertising on consumer preference for Guinness Stout and WIlfort Dark Ale. The survey method of research was adopted and 200 literate consumers of the brands under study who reside in Ibadan were purposively selected and sampled. Data collected were analyzed using percentage grade tabulation and correlation analysis. Results show that consumers perceive Guinness Stout adequately advertised and Wilfort Dark Ale under advertised. In terms of quality, consumers rated Guinness Stout adverts higher than that of Wilfort Dark Ale. The study also revealed that advertising influences consumer preference, however, quality (taste) and availability in that order, have greater influence on consumer preference than advertisements. The study concludes that advertisements alone cannot bring about brand preference. It is in this regard, that the following among others were recommended: That producers should ensure that their products are of very good quality and are made available to the people where and when needed. Specifically, Guinness Nigeria. Plc, producers of Guinness Stout should sustain Guinness Stout’s advertisement in terms of quality, reach and frequency, while, Sona Breweries, producers of Wilfort Dark Ale should consider it important to increase its advertisement of Wilfort and extend the advertisement to other media such as radio and television if and when they are ready to expand their market.
 
 

The Effect of Social Media on Financial Literacy

What makes the issue of financial literacy relevant to various social groups and the State as a whole today is the dynamic development of the market for financial services, the rapid and extensive digitalization of such services, and changes in the structure of the market caused by the emergence of new segments and new actors. A financially literate consumer will make well-informed, responsible decisions in relation to services provided by financial institutions. Financial literacy has a direct effect both on the wellbeing of a particular individual and on wellbeing across society and the State as a whole. It tends to take on particular significance at a time of certain crisis situations. The recent COVID-19 pandemic situation has brought into clear view both the significance of requirements for the establishment of effective forms of disclosure of information in the market for financial services and the need to expand the information instrumentarium intended to improve the financial literacy of the population. Many countries have in place comprehensive legislation on protecting the rights of financial consumers, as well as relevant case law. However, that alone does not resolve most of the quite specific objectives for enhancing financial literacy – and, consequently, does not protect the population from various risks and unjustified financial losses. The authors argue that it is the use of social media – as the more sought-after and mass way to spread information in today’s world – that will help expand the audience of recipients of financial education. The paper analyzes a set of factors that influence the process of boosting the role of social media channels inimproving the financial literacy of the population and examines a set of relevant resources and tools employed in various countries to build an infrastructure for financial education. The authors also discuss the need to devote attention to the arrangement of educational activities for financially isolated and undereducated strata of the population and, in this context, focus on the right choice of media channels and means of financial education to ensure equal access to financial products and services. Copyright © 2021 by Academic Publishing House Researcher s.r.o.

Does financial literacy reduce financial fragility during COVID-19? The moderation effect of psychological, economic and social factors

PurposeThe present study examines the linkage between financial literacy and financial fragility during COVID-19. It further examines if financial literacy has a differential impact on financial fragility based on psychological (financial confidence), economic (wealth) and social (race) factors.Design/methodology/approachThe authors used nationally representative data of the American working age-group. They collated six different datasets collected at different time-periods to conduct the present study. Based on 2,202 observations, they conducted logistic regression analyses to test the proposed relationships.FindingsThe authors find that financial literacy reduces the odds of being financially fragile by 9.1%. Furthermore, they find that financially literate consumers having high financial confidence are less financially fragile during COVID-19. Besides, the adverse impact of financial literacy on financial fragility is more for consumers having more than less wealth. The interaction with race is not significant, suggesting that financial literacy cuts across racial boundaries.Practical implicationsFinancial fragility is an important factor having numerous deleterious consequences. The authors’ study found that financial confidence, psychological factor and wealth economic factor enhances the negative effect of financial literacy on financial fragility. Banks and financial institutes can develop mechanisms to infuse confidence in individuals during the pandemic to reduce their financial fragility. Policymakers and governments may increase awareness related to debt management practices and design financial literacy interventions to reduce financial fragility among individuals.Originality/valueThe study is one of the initial studies to examine the antecedents of financial fragility. Based on a time-lagged data, the authors’ study examines the linkage between financial literacy and financial fragility. Though scholars have investigated financial literacy and its implications, scholarly work in this domain during COVID-19 is at best limited. The study contributes to the literature by testing the effects of boundary conditions that can change financial literacy's impact on financial fragility.

Financial knowledge and trust in financial institutions

AbstractBased on analysis of 14 years of data on Dutch consumers' trust in financial institutions, we find that financially literate consumers are more likely to trust banks, insurance companies and pension funds. This result applies both to broad‐scope trust (trust in financial institutions in general) and narrow‐scope trust (trust in one's own financial institution). Our conclusion holds when we use a financial literacy proxy based on self‐assessed knowledge or a proxy based on actual knowledge. For all types of financial institutions researched, we find that narrow‐scope trust is significantly higher than broad‐scope trust, but both forms of trust are positively related. Financially knowledgeable people are more likely to trust managers of financial institutions and have more trust in the prudential supervisory authority. Finally, our results suggest that trust in the supervisory authority positively correlates with trust in the financial sector.

A Practical Perspective for a Conservative Estimate of Blood Glucose Level during Restaurant Dining and Supermarket Shopping.

Foods today are so diverse and enjoyable, making healthy choices difficult. In this perspective, an in vitro-in silico approach for obtaining a conservative estimate of the postprandial blood glucose concentration, which is a realistic estimate nevertheless, after intake of a certain portion of meals is proposed. The rationales and feasibilities of the approach are described and discussed to an extent. The key idea is to first measure the maximum amount of glucose released in an in vitro test under standardized conditions from a specified serving size of a meal or dish or a packaged product sold in a supermarket. The value can then be translated by a literate consumer to the highest estimate of blood glucose rise prior to purchasing or eating through an established in silico blood glucose prediction model in the medical field. The strategy proposed here would help health conscious (diabetics included) and other life quality conscious individuals to make quantitative decisions on consuming the portions of different foods of desire. This strategy may be more effective in reality compared to the conventional GI (Glycemic Index) and GL (Glycemic Load) concepts.

Understanding Insurance Knowledge: A Brief 7-Item Measure

The conceptualisation of the insurance culture and the identification of a standard measuring instrument are the first steps towards defining a literate consumer. Obviously knowledge, understood as the ability to understand and use concepts in a conscious way, is considered to be a key variable for measuring the levels of many conceptual definitions of literacy, so also for insurance literacy.
 The aim of our research is precisely to verify the validity and reliability of a questionnaire that is composed of 7 questions that can represent a tool for measuring the level of insurance knowledge of consumers. The questions investigate the mere knowledge of insurance definitions and concepts, without going into too much detail about specific types of policies. To pursue this goal, a factor analysis has been conducted through a sample that is composed of 274 Italian respondents. The results show that those items are able to measure the basic insurance knowledge of a consumer.

Competition in the New ASEAN Economy

Shifts in global trade, technological developments and the COVID-19 pandemic all provide an opportunity for Southeast Asia to grow its digital economy and accelerate economic recovery. Market dynamics are changing, with the rise of online platforms catering to the growing base of digitally literate consumers. Such platforms offer a wide choice of products and services at greater convenience, across borders and through different participants in the supply chain. Existing markets are becoming more competitive and markets are being created as businesses benefit from digital technologies and draw insights from large volumes of available data. However, as the digital economy expands, sophisticated forms of anti-competitive behaviour are also emerging. Around the world, there are concerns that online platforms are becoming dominant and engaging in harmful conduct, such as collecting and using customer data-without consent-to exclude current and future competitors. Southeast Asia is vulnerable to these concerns, too. Using case studies, this study highlights why such concerns, if left unaddressed, pose a threat to competition in the new ASEAN economy.

Vulnerability of poorly literate adult consumers regarding over-the-counter drugs

Purpose This study aims at verifying the impact of literacy on over-the-counter (OTC) drug consumer vulnerability as evaluated by health literacy and label comprehension. Design/methodology/approach The item response theory (IRT) was used to estimate the health literacy of two groups and the two-way analysis of variance tests was used to test the hypotheses for the existence of mean differences between the two populations. The convenience sample involved 188 OTC consumers: 94 (50%) poorly literate and 94 (50%) university students/graduates. Findings University consumers/graduates have a level of health literacy and label comprehension that is superior to those presented by poor literate consumers. Also, age does not influence the level of health literacy by OTC drug users but has a significant impact on the understanding of OTC drug labels. Finally, the level of schooling and the “age group,” simultaneously, does not impact the understanding of OTC drug labels or health literacy. Research limitations/implications This study has added in the field of knowledge by investigating the behavior of poor literate consumers in Brazil, a developing country. The results may be relevant to Marketing professionals, especially those in the pharmaceutical industry, and to police makers, as they help identify the main problems faced by poorly literate consumers. Practical implications It is necessary to raise awareness of the dangers of self-medication and wrong use of medications, mainly focused on people with low literacy. As a suggestion, a simple glossary presented along with the label could provide explanations of scientific terms, thus increasing health literacy and reducing the vulnerability of the consumers. Social implications This study showed that when using common words such as gastritis to define a health problem, there is a higher degree of correctness. These results suggest the adoption of a more straightforward language and more precise explanations. By doing that, the pharmaceutical industry and policymakers will improve their social impact by increasing consumer power and taking care of the health of the most vulnerable population: the illiterate people. Originality/value This study contributes to the international literature, as it enhances and clarifies the knowledge about the customers’ power and vulnerability in developing countries. It fills a gap by evaluating label comprehension and heath literacy at the same time, giving an academic contribution for pharmaceutical consumers’ studies.

Railway Reading and the Late Victorian Literary Series

Railway Reading and the Late Victorian Literary Series

How Do Consumers Fare When Dealing with Debt Collectors? Evidence from Out-of-Court Settlements

AbstractDo deals with debt collectors alleviate consumer financial distress? Using new data linking court and credit registry records, we examine civil collection lawsuits where consumers can settle out of court. Random assignment of judges with different styles generates exogenous variation in the likelihood of settlement negotiations. We find that settlements increase financial distress relative to going to court, likely by draining consumers of liquidity. The effect is stronger among less financially literate consumers. Survey evidence suggests that consumers generally overestimate how much they would pay through the court system. Perceived nonpecuniary benefits also motivate some consumers to settle.

Creating Health Literate Consumer Resources: Insights from a Professional Development Program.

The Rauemi Atawhai (RA) Program, delivered at Counties Manukau Health by Health Literacy New Zealand (Limited), is a professional development program that aims to develop the capability in health care professionals to recognize and develop health literate, culturally competent health education resources and systems. Local evaluation of this program explored participant learning and barriers to becoming a health literate organization. We found that program participants consolidated their understanding or built a more comprehensive understanding of health literacy. Further, they gained new skills to assist them in developing future consumer resources. However, within the evaluation period, the RA Program had limited influence on the design and refinement of systems for developing, reviewing, disseminating, and evaluating consumer resources for their service, as well as approaches for engaging patients and family in design and review. Significant organizational action is needed to support these changes. Opportunities for leaders and managers to participate in capability building and discussions to create conditions (e.g., resource and authorization) for change in the environments in which staff work are needed. [HLRP: Health Literacy Research and Practice. 2020;4(3):e185–e189.]

Ambient Ads as Unconventional Media Approach

Ambient Ads as Unconventional Media Approach

Do Consumers Strike Bad Deals with Debt Collectors? Evidence from Out-of-Court Settlements

Do deals with debt collectors alleviate consumer financial distress? Using new data linking court and credit registry records, we examine civil collection lawsuits where consumers can settle out of court. Random assignment of judges with different styles generates exogenous variation in the likelihood of settlement negotiations. We find that settlements increase financial distress relative to going to court, likely by draining consumers of liquidity. The effect is stronger among less financially literate consumers. Survey evidence suggests that consumers generally overestimate how much they would pay through the court system. Some consumers are also motivated to settle by perceived non-pecuniary benefits.

Financial Literacy and its Influence on Consumers’ Internet Banking Behaviour

This study examines the level and antecedents of financial literacy and investigates its influence on consumers’ internet banking behaviour. The focus is on Cyprus, a country that experienced an unprecedented financial crisis in 2013 that caused an enormous shrinkage of the banking sector. Ever since then, banks have been investing in financial innovations, such as internet banking (i-banking), aiming to enhance customer service and efficiency in the age of financial digitalization. Notwithstanding, the results show that financial literacy is yet too low in Cyprus, whereby only 37.33% of the study’s survey adults have a good financial knowledge proficiency level. The results indicate that financially literate consumers show a strong preference for frequent use of i-banking, whereby the odds of using i-banking frequently are increased by more than 64% for one standard deviation increase in the respondents’ financial knowledge score. The findings highlight the crucial interplay of digital and financial sophistication, and their positive influence on consumers’ usage of digital financial services. The evidence from Cyprus also points to policy directions according to which digital financial education programs should be a central element in national financial literacy strategies.